Pakistan Industrial and Traders Associations Front (PIAF) has welcomed the approval of new automotive policy, hoping the policy will attract new European car makers, as the policy offers tax incentives to new entrants to help them establish manufacturing units and compete effectively world-wide.
The PIAF Chairman Irfan Iqbal Sheikh while responding to the policy said that after a hiatus of almost two and a half years, the Economic Co-ordination Committee (ECC) of the cabinet finally gave the go-ahead to the Automotive Development Policy 2016-21 which is appreciable.
After a delay that cost the country billions since 2011 when the automobile policy started being formulated, its final version was approved, paving the way for new international car manufacturers to enter the local market, he said. The automotive policy is formally launched on Monday (today) which is aimed at enhancing consumer welfare and boosting competition besides attracting new players, he added.
It is good that greater localization of auto parts had been ensured in the policy and in case the new entrants were unable to achieve the targets, they would be penalised. Now the international companies like Fiat, Audi or Volkswagen can establish their plants in the country without any further delay as the policy give them several incentives. PIAF chairman said that an effective auto policy should do two things for a country; increase employment and industry by increasing the manufacturing sector for automobiles, and of course, allowing for increasing sales and increasing the quantity of cars bought by the public, which ideally should be cheaper and of better quality. He said that the local plants of Japanese companies do their part in employing a sizeable workforce. The government has offered new entrants duty-free import of their entire plant and machinery among other benefits, he added.